U.S. President Donald Trump reignited his commerce battle by threatening greater than a dozen international locations with larger tariffs on Monday (July 7, 20250 — however then stated he could also be versatile on his new August deadline to succeed in offers.
Mr Trump despatched letters to buying and selling companions together with key U.S. allies Japan and South Korea, asserting that duties he had suspended in April would snap again much more steeply in three weeks.
Tokyo and Seoul can be hit with 25% tariffs on their items, he wrote. Countries together with Indonesia, Bangladesh, Thailand, South Africa and Malaysia have been slapped with duties starting from 25% to 40%.
But in a transfer that can trigger contemporary uncertainty in a world economic system already unsettled by his tariffs, the 79-year-old as soon as once more left the international locations room to barter a deal.
“I would say firm, but not 100% firm,” Mr. Trump instructed reporters at a dinner with visiting Israeli Prime Minister Benjamin Netanyahu when requested if August 1 deadline was agency.
Pressed on whether or not the letters have been his closing supply, Mr. Trump replied: “I would say final — but if they call with a different offer, and I like it, then we’ll do it.”
The U.S. president had unveiled sweeping tariffs on imports on what he referred to as “Liberation Day” on April 2, together with a baseline 10% tariff on all international locations.
But he shortly suspended all tariffs above 10% for 90 days following turmoil within the markets.
They have been on account of chill in on Wednesday and Mr. Trump despatched the letters prematurely of that deadline.
Mr. Trump’s near-identically worded letters to Japanese and South Korean leaders stated he would impose 25% tariffs as their buying and selling relationships with Washington have been “unfortunately, far from Reciprocal.”
Trump Claims He Stopped India-Pakistan War, Eyes Trade Deal
In a daring assertion, U.S. President Donald Trump claims credit score for halting a possible battle between India and Pakistan whereas additionally revealing {that a} main commerce cope with India is nearing completion. Watch as we break down the implications of his remarks and what it means for international diplomacy and commerce.
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The Hindu
He warned of additional escalation if there was retaliation in opposition to the levies.
But Mr. Trump on Monday additionally signed an order formally extending the Wednesday deadline, suspending it to August 1.
‘President prerogative’
The new August date successfully marks an additional delay — and Mr. Trump’s newest feedback threaten to compound the uncertainty over when the deadline actually is.
According to letters posted to Mr. Trump’s Truth Social platform, merchandise from Indonesia will face a 32% tariff, whereas the extent for Bangladesh is 35% and Thailand, 36%.
Most international locations receiving letters up to now had duties comparable or unchanged from charges threatened in April, though some like Laos and Cambodia noticed notably decrease ranges.
The Trump administration is underneath stress to point out outcomes after promising “90 deals in 90 days.”
So far solely two agency offers have emerged, with Britain and Vietnam, plus an settlement to dial again super-high tit-for-tat tariffs with China.
Japan’s Prime Minister Shigeru Ishiba stated at a cupboard assembly Monday that the announcement of the 25 p.c tariffs is “genuinely regrettable,” native media reported.
South Korea’s National Security Adviser Wi Sung-lac in the meantime met together with his US counterpart Marco Rubio in Washington, expressing hope {that a} bilateral summit might quickly be held to realize “mutually beneficial outcomes across key pending issues.”
Asked why Trump opted to start out with Japan and South Korea, White House Press Secretary Karoline Leavitt stated: “It’s the president’s prerogative, and those are the countries he chose.”
Thailand’s performing Prime Minister Phumtham Wechayachai stated Tuesday he wished a “better deal” than the 36 p.c tariff Trump threatened to impose, including: “The most important thing is that we maintain good relations with the US.”
Malaysia stated it was “committed to continuing engagement with the US towards a balanced, mutually beneficial, and comprehensive trade agreement,” its commerce ministry stated in an announcement, after Washington imposed a 25 p.c tariff on the Southeast Asian nation.
U.S. Treasury Secretary Scott Bessent stated Monday that there can be extra offers developing: “We are going to have several announcements in the next 48 hours.”
Major U.S. inventory indexes fell from information Monday on Mr. Trump’s contemporary threats. The Nasdaq tumbled 0.9% and the S&P 500 misplaced 0.8 p.c.
Trump has additionally threatened an additional 10% tariff on international locations aligning themselves with the rising BRICS nations, accusing them of “Anti-American policies” after they slammed his duties at a summit.
But companions are nonetheless dashing to avert Trump’s tariffs altogether.
The European Commission stated EU chief Ursula von der Leyen had a “good exchange” with Trump on commerce when the pair spoke Sunday.
